Lobbying Disclosure Information Manual - Fair Political Practices ...

Chapter 1 — Who Must File
• Payments for or in connection with direct
communication with state officials;
• Payments for or in connection with
soliciting or urging other persons to enter
into direct communication with state
officials;
• Payments to an organization, other than
regular dues payments, for the purpose of
hiring a lobbyist;
• Payments to a lobbying coalition; and
• Payments that directly or indirectly benefit
state officials or members of their
immediate families (“activity expenses”),
but only if other payments to influence are
made during the same calendar quarter.
For purposes of determining whether an
entity qualifies as a $5,000 filer,
compensation paid to an employee (other
than a lobbyist or an employee that provides
clerical, secretarial, manual, or statistical
services) must be counted if 10% or more of
his or her compensated time in a calendar
month is spent in connection with the
activities described above.
However, all payments for travel and
expenses incurred in connection with these
activities must be counted whether or not the
employee spends 10% of his or her time on
lobbying activities.
$5,000 filers are required to:
• File a Report of Person Spending $5,000
or More to Influence Legislative or
Administrative Action, Form 645, for each
calendar quarter in which $5,000 has
been spent to influence legislative or
administrative action.
QuickTIP
$5,000 filers are not required to
register or terminate.
Examples In February, the Valencia
Corporation sends an employee
to Sacramento to testify before a state
agency regarding a proposed regulation.
The employee spends more than 10% of his
or her time during the month preparing and
presenting the testimony. The amount of the
employee’s salary and the travel expenses
attributable to the trip exceed $5,000. The
corporation qualifies as a $5,000 filer and
must file a report for the first quarter, January
1 - March 31.
In April, the Association of Valley Growers
pays for newspaper advertisements urging
readers to communicate with the Governor on
a piece of legislation. The total cost of the
advertisements exceeds $5,000 during the
second calendar quarter. The Association
qualifies as a $5,000 filer and must file a report
for the second quarter, April 1 - June 30.
In October, the Association of Valley
Growers pays a telephone solicitor $10,000
to call voters regarding a piece of legislation.
The solicitor may connect the voter to a
legislator’s office so that the voter can speak
directly to the legislator’s staff regarding the
legislation. The Association qualifies as a
$5,000 filer and must file a report for the
fourth quarter, October 1 – December 31.
The Association of Preservationists is a
lobbyist employer and its in-house lobbyist is
paid from the general membership dues
fund. However, in one quarter, the
Association solicits a $6,000 special
assessment to pay lobbying expenses.
Association members who pay the
assessment and are not already lobbyist
employers will each qualify as a $5,000 filer.
Who is Not a $5,000 Filer?
• A person or entity that employs an inhouse
lobbyist or contracts with a lobbying
firm.
• A person or entity that does not spend
$5,000 or more in a calendar quarter to
influence legislative or administrative
action.
• A person or entity whose only payments
are gifts to state officials.
Fair Political Practices Commission 1-8 Lobbying Manual, 7/2005